2 Mid-Cap Stocks to Consider Right Now and 1 to Question

Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are two mid-cap stocks with massive growth potential and one best left ignored.

One Mid-Cap Stock to Sell:

Entegris (ENTG)

Market Cap: $10.9 billion

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Should You Sell ENTG?

1. Sales tumbled by 4.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Free cash flow margin dropped by 8.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Entegris is trading at $72.10 per share, or 20.5x forward P/E. Check out our free in-depth research report to learn more about why ENTG doesn’t pass our bar.

Two Mid-Cap Stocks to Watch:

Dynatrace (DT)

Market Cap: $16.46 billion

Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.

Why Are We Positive On DT?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 17.6% growth over the last year
2. Superior software functionality and low servicing costs are reflected in its top-tier gross margin of 81.9%
3. Robust free cash flow margin of 25.4% gives it many options for capital deployment

Dynatrace’s stock price of $55.30 implies a valuation ratio of 8.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Core & Main (CNM)

Market Cap: $11.3 billion

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.

Why Does CNM Stand Out?

1. Annual revenue growth of 17% over the past five years was outstanding, reflecting market share gains this cycle
2. Operating margin expanded by 4.7 percentage points over the last five years as it scaled and became more efficient
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $59.68 per share, Core & Main trades at 24.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.